Thinking about starting another business? Here are the factors you should consider.
There are two types of entrepreneurs:* those who start one company and those who start lots of companies. Those who start lots of companies like to describe themselves as “serial entrepreneurs’’ and this is evident in companies like Amazon, UBA Group, Tesla and Twitter which are very different companies, but with one common denominator: their chief executives also run other companies.
The concept is called “parallel entrepreneurship,” or running multiple companies at once.
On the other hand, not every entrepreneur excels at running more than one business. Take Steve Jobs, who famously struggled when trying to simultaneously run Apple and Pixar.
Parallel entrepreneurship makes intuitive sense
For people with large ambitions and a strong work ethic, it’s a way to get even more done. But for some entrepreneurs, doubling the companies can mean doubling the risks.
Ultimately, people who have been through it say that parallel entrepreneurs need to answer an important question: *Why am I doing this, and can I sustain it?*
*Multiple businesses are exciting*
If you’ve started one company, you can do it again. And you probably should. Running a business can be exciting in its own right, with a set of unique challenges and thrills.
*Multiple businesses can provide financial security*
If excitement isn’t your thing, then maybe financial security is more palatable.
Not every business will turn into billion dollar companies like Apple and Facebook. If you want to sit on a future mountain of cash, you may have to start more than one company.
*Starting multiple businesses allows you to stay fresh*
Every time you start a new company, you learn something new. Learning is half the fun of doing and keeps your mind sharp and your skills fresh.
*Not starting another business is a waste of your personal experience*
Experience is meant to be used, shared and acted upon, not stifled. When you have the experience of starting one successful company (or an unsuccessful company, for that matter), you can turn around and use that experience to do it again.
*Starting a business creates a valuable network that makes it easier to start another company*
Another valuable entrepreneurial asset is your personal network. When you start a company, you meet investors and all sorts of people who help to grow a business. These relationships are highly valuable. They enrich you personally and allow you to create the platform upon which to build future companies.
*Starting more businesses gives you exponentially more influence*
Revenue isn’t the only thing that grows bigger with more businesses. Your influence grows, too.
*The more businesses you start, the better you become*
The first time you do anything, you’re barely hanging on. The second time you do it, you get a bit better. By the third time, you’re starting to develop confidence. The fourth and fifth time, you feel like you’re getting the hang of it. This is true for starting businesses, too. With every new business, you’re building on knowledge, brand visibility, marketing experience, and other resources, creating a business that is even better than the one before.
